Paper Packaging Market - Forecast (2024-2030)

The paper packaging market size is forecast to reach USD 487.33 billion by 2031, after growing at a CAGR of 4.63% during the forecast period 2024-2031. Consumers all over the world are shifting their purchasing patterns to more environmentally friendly options as they become more aware of the risks that packaging poses to the environment. Manufacturers are under pressure from customers, the government, and the media to make their goods, packaging, and production methods more ecologically friendly. For packaging that is more environmentally friendly, consumers are willing to spend extra. Due to these trends, the paperboard packaging sector is anticipated to expand. The market is being driven by the growth of e-commerce sales and the rising demand for packaging. 

The report “Paper Packaging Market– Forecast (2024-2031)”, by IndustryARC, covers an in-depth analysis of the following segments of the paper packaging market.

By Product Type: Corrugated Boxes, Boxboard or Paperboard Cartoons, Flexible Papers

and Others.

By End User: Food and Beverages, Healthcare, Personal Care, Electronics, and Others.

By Raw Materials: Fresh Source, Recycled Waste.

By Geography:  North America, Europe, APAC, and RoW

• The North American region dominates the Paper Packaging market share in 2023. Increasing production and government support is anticipated to drive market growth.

• On June 15, 2023, nearly €23 million was invested in the International Paper facilities in Mortagne (Société Normande de Carton Ondulé - SNCO) and Chalon (Emballages Laurent SAS) to help them expand their selection of environmentally friendly packaging for consumers and match the growth of the e-commerce.

• On April 03, 2023, Sonoco Advances Sustainable Packaging with Pre-qualification of EnviroFlex Paper for How2Recycle® Labelling. In addition to roll stock, heat/cold seal, sachets, and pre-made pouches, EnviroFlex Paper ULT 1.0 provides a superior oxygen, moisture, and grease barrier packaging solution. In addition to being curbside recyclable, EnviroFlex Paper ULT 1.0 offers excellent preservation and protection for perishable foods including baked goods, sweets, pet treats, salty snacks, and powdered drinks. 

Corrugated boxes dominated the paper packaging market in 2023. Typically, packing materials or shipping containers are made of corrugated cardboard. Corrugated cardboard boxes are the best for ensuring the security of the item they are carrying, especially over long distances shipments. This is due to the fact that they are composed of corrugated paper. With the rapid growth of e-commerce, there has been an increased demand for sturdy and protective packaging solutions. Corrugated boxes are favored for their durability and ability to safeguard products during shipping, making them a crucial choice for businesses operating in the online retail space. It is estimated that eCommerce will produce $5.42 trillion in annual sales in 2022. The trend towards sustainable packaging is also prevalent in the corrugated boxes segment. Many companies are opting for eco-friendly options such as recycled and recyclable corrugated materials. This aligns with consumer preferences for environmentally responsible packaging.

Food and beverage dominated the paper packaging market in 2023. Paper packaging has gained significant popularity in the food and beverage industry due to its various advantages, including sustainability, versatility, and consumer appeal. Paper is an often available and affordable material. Paper is widely utilized in food and beverage packaging. According to the U.S. Census Bureau, estimates of U.S. retail and food services sales for July 2023 is about $696.4 billion which is 2.3% from the same period a year ago.  The rising need for ready-to-eat, frozen, and packaged items is driving the rise of the food business, which in turn is boosting demand for folding cartons and corrugated boxes. The food sector is using innovative methods of brand development in the market using paper food packaging.

Fresh Source dominated the paper packaging market in 2023. In order to help extend shelf life, improve food quality and safety, give information, and issue warnings about potential hazards, fresh produce packaging trends are increasingly incorporating smart capabilities including sensing, detecting, tracing, recording, and communicating. Absorbers and emitters included in active packaging aid in maintaining food quality and preventing degradation. For instance, the Produce Marketing Association reported that fresh produce sales in the United States climbed by $4.5 billion between January and August 2020 in comparison to the same period in 2019. A survey done in July 2020 revealed that the majority of modern customers liked buying fresh food and were willing to pay more for it. The COVID-19 issue has also increased demand since individuals have attempted to load up as much fresh food as possible for sufficient use, There are numerous points of contact before it reaches the buyer, and there are multiple modes of transportation. 

The North American region dominates the paper packaging market share with a CAGR of 5.12% during the forecast period (2024-2031). Paper packaging is composed of a variety of paper and paperboard-based techniques, including corrugated cardboard boxes, flexible paper containers, and kraft paper bags. The growth of the paper packaging market is primarily driven by increasing demand for more cost-effective and lightweight packaging solutions, along with the emergence of newer innovative packaging solutions. For instance, according to the Environmental Protection Act (EPA), having created 33.3 million tons of MSW in 2018, or 11.4% of the total, corrugated boxes were the most common type of product that was produced. In total, the generation of paper and paperboard packaging and containers accounted for 41.9 million tons of MSW in 2018, or 14.3% of all generations. The increase in production and government support is also anticipated to drive market growth. The development of the paper packaging market is further enhanced by various significant trends, such as the increasing use of renewable resources and the growing demand for innovative and biodegradable paper packaging materials. 

The momentum in the e-commerce industry is a significant driver of growth in the paper packaging market. The rise of online shopping has brought about changes in packaging requirements, preferences, and sustainability considerations. As online shopping expands quickly, e-commerce packaging has gained importance within the packaging business. Due to its durable construction and environmental benefits, rigid packaging, like corrugated packaging, is predicted to rule the market. E-commerce allows businesses to reach a global customers. Paper packaging can often meet international sustainability standards more easily than plastics.

According to a survey by Two Sides conducted in the first quarter of 2020, 57% of the 5,700 Europeans polled preferred that online orders be delivered in paper or cardboard packaging, and 57% made an effort to use less plastic packaging. 70% of respondents said they preferred minimal or no packing, and 38% said they would pay extra for a product if it included in environmentally friendly packaging.

Consumers rank paper and cardboard packaging higher on the sustainability scale for factors including home compostability (72%), environmental friendliness (62%), and recycling ease (57%). 30% of customers believe that Europe has a recycling rate of more than 60%, making paper and cardboard packaging the most recycled material.

Governments have introduced regulations that mandate higher recycling rates for packaging materials. Paper packaging's recyclability advantage positions it as a favorable option in compliance with these regulations.

Government policy and regulation will continue to be very important in determining the paper packaging market. There are various requirements that must be taken into account, such as The Green Deal, for any business thinking about launching a new e-commerce solution. The plastics packaging tax, which was implemented in January 2021 and is still spreading throughout member states, has the most direct influence on e-commerce packaging in Europe.

Governments often launch public awareness campaigns highlighting the environmental impact of plastic waste. This leads to increased consumer demand for products with paper packaging, seen as an eco-friendlier choice. Many governments have implemented bans or restrictions on single-use plastics, such as plastic bags. These bans create a void that paper packaging can fill, leading to increased demand for paper-based alternatives. For Instance, On January 14, 2022, the Italian Legislative Decree 196/2021 (the "Italian Decree") that implements the Single-Use Plastic Directive ("SUPD") came into effect.

While paper is often considered an eco-friendlier choice compared to certain plastic materials, there are still sustainability challenges associated with its raw materials. sustainable sourcing of virgin wood fiber is essential to prevent deforestation and habitat loss. 

One of the primary challenges with paper packaging is the potential for deforestation and habitat destruction. If the demand for paper is not managed sustainably, it can lead to negative impacts on biodiversity, local communities, and the overall health of forests. The paper industry relies on trees as a raw material. Unsustainable logging practices can lead to resource depletion and a loss of biodiversity in forests.

In certain cases, paper packaging might have a shorter shelf life compared to materials with better barrier properties. This can impact the suitability of products with longer shelf lives. Paper packaging may not have the same inherent strength and durability as materials like plastics or metals. Heavy goods require packaging that can withstand the weight and potential impact during transportation and handling. The necessity for paper to package highly heavy goods presents the biggest obstacle for the paper packaging business, which has led to competition from the plastics and metal packaging sectors. In certain cases, consumers might perceive paper packaging for heavy goods as less reliable or protective than alternatives like plastic or metal.

In 2023, the top ten players in the Paper Packaging market share, accounting for 31.05% of the share. Major players in the paper packaging market are Smurfit Kappa, Napco National Paper Products Company, Billerud, Westrock Company, Georgia Pacific LLC, Pratt Industries Inc., DS Smith Packaging Limited, Stora Enso Oyj, Mondi Group Plc. And Huhtamaki Oyj